Exhibit 99.1
FOR IMMEDIATE RELEASE
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Duckwall-ALCO Stores Announces
Restructuring of Organization
New structure designed to help company improve performance
Abilene, Kan. (May 3, 2005) - Duckwall-ALCO Stores, Inc. (Nasdaq: DUCK) has
announced a restructuring of its organization, designed to help the company
more effectively compete in today's competitive retail environment.
President and CEO Bruce Dale, stated, "Our organization simply had too many
layers of management. We need a much leaner, more flexible organization if we're
going to compete aggressively in our market category."
Dale added, "In my 35 years of retailing experience, I've seen the benefits of a
lean organization. Fewer management layers means we will make faster decisions
and are able to execute more quickly on our strategy."
As part of the restructuring, 46 corporate positions were eliminated, which will
result in an annualized savings of approximately $2.2 million. One-time costs
associated with the restructuring will be approximately $900,000.
Duckwall-ALCO Chairman of the Board Warren Gfeller commented, "The company is
continuing to execute on the initiatives we outlined in early March. This
restructuring will allow the organization to move more quickly towards our
objectives. The board is confident Bruce has assessed the organizational
structure objectively and made the decisions necessary to help us implement a
long-term strategic plan for growth."
About Duckwall-ALCO Stores
Duckwall-ALCO Stores, Inc. is a leading regional retailer that specializes in
offering a wide variety of products at reasonable prices to the underserved
communities of America. Founded in 1901 by A.L. Duckwall as a general
merchandising operation in Abilene, Kan., Duckwall-ALCO is known for its
convenient locations and for its friendly, personal service. The company has
259 stores in 21 states across the central United
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States, operating under two names, ALCO and Duckwall. ALCO discount stores offer
a full line of merchandise, while Duckwall variety stores serve smaller
communities, offering a smaller selection.
Forward-looking Statements
This press release contains forward-looking statements, as referenced in the
Private Securities Litigation Reform Act of 1995 (the "Act"). Any
forward-looking statements are made by the Company in good faith, pursuant to
the safe-harbor provisions of the Act. These forward-looking statements reflect
management's current views and projections regarding economic conditions, retail
industry environments and Company performance. Factors, which could
significantly change results, include but are not limited to: sales performance,
expense levels, competitive activity, interest rates, changes in the Company's
financial condition and factors affecting the retail category in general.
Additional information regarding these and other factors may be included in the
Company's quarterly 10-Q filings and other public documents, copies of which are
available from the Company on request.
For more information, contact:
Dick Mansfield
Vice President/Finance, Treasurer and Chief Financial Officer
785-263-3350 ext. 286
email: dmansfield@duckwall.com
or
Debbie Hagen
Hagen and Partners
913-652-6547
email: dhagen@hagenandpartners.com
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